Reply to: SKA news - now in Wall Street Journal!

[Incognito]

Well done Alexi, this time next year son we'll all be millionaires.

[AtW]

The real reason that everyone is devaluing using quantitative easing is that the Chinese refuse to raise the value of their currency.

No, it's not the real reason. The real reason is that Govt print money because they have nearly reached the end of the road for debt they used as driver for growth in the last few decades, this means debt can't be refinanced as rich people like Chinese no longer want to buy tulip paper.

These printed money no longer get recycled in debt, so they go into commodity markets, that's why oil is back to nearly $100 per barrel, metals way up again, food too etc.

But never mind all this - it's deflation that's the problem apparently!

[Sysman]

Well done Alexei.

However on the question the article attempts to address, I think this is the key:

U.K. businesses seem to have been maximizing their margins on overseas sales rather than using the pound's depreciation to increase market share. But one thing could potentially lead to another.

"If they've been concentrating on margin, then they've been strengthening their companies, which means that they will be in better shape to grow their markets," said Jerry Blackett, chief executive of the Birmingham Chamber of Commerce.

i.e. the cheaper pound isn't boosting exports because the prices being charged abroad haven't reduced.

I've seen the same here in Switzerland BTW. As the Swiss Franc has risen against the Euro we are getting "Euro special offers", but that often amounts to only 5 cents off the price of a German beer rather than the full percentage; the retailers are increasing their margins.

The real reason that everyone is devaluing using quantitative easing is that the Chinese refuse to raise the value of their currency.

[milanbenes]

Congrats Alexey

Milan.

[Pondlife]

Nice one.

[lilelvis2000]

Who da man? You da man!

[Halo Jones]

[d000hg]

Well done Alexi.

In seriousness, WHS.

edit: since someone too cowardly to say it in public called me a hypocrite for being nice on the voting system, I retract the comment.

[HairyArsedBloke]

Well done Alexi.

[MarillionFan]

And so talented.

[DimPrawn]

Here is the important bit:

On the other side of the city, Birmingham's Business Science Park is mostly frequented by tramps, Romanian thieves and people trying to find Aston Villa football club. Turn left by the Burger King.

It hosts Majestic SEO, an Internet backlinks analysis service, which launched in February 2008 as a commercial offshoot of a project to create a new major Porn search engine. It conducts more than 50% of its business outside the U.K., with the Bangkok Ladyboys being the major customers.

Alex Chudnovsky, Majestic's founder and biggest keeper of tame squirrels, says sterling's depreciation is probably helping his evil landlord and kebab shop owner, but he noted that his firm has to spend a lot of money buying potatoes, and of course dry cleaning bills for the curtains.

He believes the government ought to punish evil spekulants, give all ladies moustache to look like mother and to move capital to Birmingham. He also mumbled something about tax rates, FFS! and threw in a couple of random smilies.

"OK, the currency's weak...but this is a temporary effect, " Mr. Chudnovsky said. " back in Chernobyl I faced 100000% inflation and had to make Vodka from sister's body hair. This we learned at prestigious college of economics and where I graduated with full honours in Lada gearbox assembly course."

[conned tractor]

If you don't like my economic views now published in Wall Street Journal then press Alt-F4 now (if you are on Mac then get a proper PC!).



More here: Weak Pound Fails to Boost Exports - WSJ.com

Well done, that's a fantastic piece of publicity. Has there been any more big anouncements recently as I haven't been on here for a while.

My Father in Law was a manager at acme whistles....worked there for donkeys.

[d000hg]

You put me off it

Quote articles actually of interest especially since the bit about you was a whole page down. You really suck at self-promotion.

When you get quoted by WSJ then we'll talk about who is a failure among us

Exactly how manu sales have you made to WSJ? Are you a business or a blogger?

[realityhack]

On the other side of the city, Birmingham's Business Science Park is the antithesis of the old industrial center.
It hosts Majestic SEO, an Internet backlinks analysis service, which launched in February 2008 as a commercial offshoot of a project to create a new major Internet search engine. It conducts more than 50% of its business outside the U.K., with the U.S. market being key.
Alex Chudnovsky, Majestic's founder, says sterling's depreciation is probably helping sales, but he noted that his firm has to spend a lot of money on hardware, most of which it buys from overseas.
He believes the government ought to focus more on attracting businesses that will base themselves in the U.K. and export products. But corporate tax remains a deterrent, and even taking into account the government's promised cut in the rate to 24%, it is still much higher than across the water in Ireland, for example, where it is only 12.5%.
"OK, the currency's weak...but this is a temporary effect," Mr. Chudnovsky said. "They [firms] will be looking for something more permanent, such as how much tax they're going to be paying."

Great publicity AtW! Well done.

[AtW]

The only interesting story you post, and you DON'T quote the whole thing or at least the relevant part?!

You put me off it

When you get quoted by WSJ then we'll talk about who is a failure among us